Slide 1: Interim report 1-6 2020
Interim report 1-6 2020 Jukka Rinnevaara CEO Teleste Proprietary. All rights reserved. Unclassified
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the Company. The information on which it is based has not been independently verified by any other person. This presentation is not intended to provide the basis of any investment decision and should not be considered as a recommendation by the Compa
Slide 3: Interim report – H1 2020
Interim report – H1 2020 On 14 May 2020, Teleste announced its new strategy, according to which the company will focus on technology businesses and the higher added-value services that support them. As a result, the company has decided to divest its services business in Germany. Teleste Corporat
Slide 4: We make your everyday life smart, safe and smooth
We make your everyday life smart, safe and smooth Teleste Proprietary. All rights reserved. Unclassified 4
Slide 5: Business areas
Business areas Video and Broadband Solutions Network Services Broadband networks and video security Comprehensive higher added-value and information solutions service solutions for operators Teleste Proprietary. All rights reserved. Unclassified 5
Slide 6: COVID-19 summary 1(2)
COVID-19 summary 1(2) • The negative impacts of the COVID-19 pandemic on Teleste's operations continued in the second quarter. In response to the measures imposed by the authorities in various countries, operators restricted or suspended their broadband network construction, while certain customers
Slide 7: COVID-19 summary 2(2)
COVID-19 summary 2(2) • The overall impact of the pandemic on Teleste's business is still extremely difficult to estimate due to the uncertainty related to the development of the pandemic and its potential second wave. • We have carried out measures to achieve cost savings as well as ensure our deli
Slide 8: Q2 2020 highlights, continued operations
Q2 2020 highlights, continued operations Net sales 33,5 MEUR (42,3) -20,7 % Adjusted operating profit 0,1 MEUR (2,3) -93,5 % Earnings per share -0,05 EUR (0,07) -117,9 % Operative cash flow 1) 11,1 MEUR (-3,2) Orders received 30,0 MEUR (43,1) -30,3 % Order backlog 79,0 MEUR (76,2) +3,7 %
Slide 9: Teleste Group, continued operations – Q2 2020
Teleste Group, continued operations – Q2 2020 Orders received and net sales decreased year-on-year and quarter-on-quarter. COVID-19 played a role in the decline in both business areas, while the technological transformation of distributed access architecture was also a factor in the lower net sale
Slide 10: Video and Broadband Solutions – Q2 2020
Video and Broadband Solutions – Q2 2020 Orders received decreased year-on-year and quarter-on-quarter both in access network products and video security and information solutions. Order volumes were affected by operators' expectations regarding the transition to distributed access architecture as
Slide 11: Network Services, continued operations – Q2 2020
Network Services, continued operations – Q2 2020 Teleste revised its network services strategy, according to which the company will focus on the higher added-value services in the UK, Switzerland, Finland, Poland and Belgium. Orders received and net sales decreased year-on-year and quarter-on-qu
Slide 12: Teleste Group, January - June 2020
Teleste Group, January - June 2020 Continued operations 1-6 2020 1-6 2019 YoY change 1-12 2019 Orders received, M€ 75,9 88,8 -14,5 % 167,5 Net sales, M€ 70,1 83,5 -16,1 % 165,3 Adjusted EBIT, M€ 1,6 4,0 -60,7 % 8,8 Adjusted EBIT, % 2,2 % 4,8 % 5,3 % EBIT, M€ 1,0 -3,3 1,9 Net profit, M€ 0,2 -4,5 -0,3
Slide 13: Business areas, January - June 2020
Business areas, January - June 2020 Continued operations Video and Broadband Solutions 1-6 2020 1-6 2019 YoY change 1-12 2019 Orders received, M€ 65,5 75,8 -13,6 % 143,5 Net sales, M€ 59,7 70,6 -15,5 % 141,4 EBIT, M€ 1,0 3,8 -73,1 % 8,1 EBIT, % 1,7 % 5,4 % 5,7 % Average personnel 660 680 -2,9 % 665
Slide 14: Order Backlog (at the end of period)
Order Backlog (at the end of period) Teleste Group 90 80 79.0 70 73.2 71.0 60 50 57.4 M€ 40 30 20 26.9 10 0 2016 2017 2018 2019 2020 H1 Teleste Proprietary. All rights reserved. Unclassified 14
Slide 15: Equity Ratio (at the end of period)
Equity Ratio (at the end of period) Teleste Group, including discontinued operations 60% 50% 52.5 % 51.7 % 48.3 % 49.5 % 48.4 % 40% 30% 20% 10% 0% 2016 2017 2018 2019 2020 H1 Teleste Proprietary. All rights reserved. Unclassified 15
Slide 16: Net gearing (at the end of period)
Net gearing (at the end of period) Teleste Group, including discontinued operations 50% 40% 30% 34.1 % 25.0 % 25.4 % 20% 16.8 % 10% 5.9 % 0% 2016 2017 2018 2019 2020 H1 Teleste Proprietary. All rights reserved. Unclassified 16
Slide 17: Net Debt / EBITDA (12 mth rolling)
Net Debt / EBITDA (12 mth rolling) Teleste Group 3.5x 3.0x 2.5x 2.4x 2.0x 2.2x 1.5x 1.4x 1.0x 1.0x 0.5x 0.3x 0.0x 2016 2017 2018 2019 2020 H1 Teleste Proprietary. All rights reserved. Unclassified 17
Slide 18: Outlook for 2020
Outlook for 2020 Due to the COVID-19 pandemic, many countries in Teleste's main market area have imposed strict and extensive restrictions on the daily functioning of society. At present, it is extremely difficult to estimate the extent of the negative impact of the pandemic on Teleste's net sales a